Nov 6 (Reuters) -U.S. cotton futures fell to a four-month low on Monday on speculative selling amid concerns about the demand outlook for the natural fiber.

* Cotton contracts for December CTZ3 fell 0.98 cent, or 1.23%, at 78.64cents per lb at 12: 32 p.m. ET (1730 GMT), after dropping to its lowest since June 29 at 78.24 cents per lb earlier in the session.

* The fact that cotton is in a down trend is due to speculative selling based off the price action on the charts, there is no news to support cotton at all, said Jack Scoville, vice president at Chicago-based Price Futures Group.

* In the week to Oct. 31, speculators cut net long position in ICE cotton futures by 1,151 contracts to 7,556, data from the Commodity Futures Trading Commission (CFTC) showed on Friday. CFTC/

* "It turns out demand is even worse than I imagined. Cotton demand is echoing just how poor both the U.S. and now the world economies have become," Don Shurley, professor emeritus of cotton economics at University of Georgia wrote in a note dated Oct. 3.

* Focus shifts to the U.S. Department of Agriculture's (USDA) November's World Agricultural Supply and Demand Estimates (WASDE) report is due on Thursday.

* "I think we'll see somewhat smaller production and smaller ending stocks (in the WASDE report)," he added

* The USDA in its October World Agricultural Supply and Demand Estimates (WASDE) report cut U.S. production in 2023/24 to 12.8 million bales, citing lower yields in Texas.

* Elsewhere, Chicago soybean futures hit their highest level in some eight weeks, while the wheat was seen down. GRA/

Reporting by Daksh Grover in Bengaluru; Editing by Maju Samuel